Mr China was written almost 20 years ago. I believe hat much has changed since then. I did already notice significant changes from my last visit in Y2011 relative to Y2003. Also there is now lot's of skilled management talent (Chinese natives who studied abroad, or US Chinese expatriates) that is familiar with western management.
The problem with RTO is that it exploits a legal loophole, to get small companies that operate in China, listed in an US exchange. Because of that, there is really no strong incentive from the Chinese or even the US to enforce standards. For the Chinese, the RTO's are not public companies, they are private. The Chinese will say, that if you want us to enforce standards, list the companies in China. I am not keen on Chinese standards either and rather prefer companies listed in Hongkong, which as far as I can tell, has standards that are international competitive (except for insider trading). The accounting laws are influenced by the British. overall I have not heard much trouble about Chinese companies listed in HK. The big and reputable Chinese companies (banks, telecom, insurance) all have dual listings in Chinese exchanges and Hongkong. |
